ExtraMileIssue9

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New drivers and new trucks cost money, and XYZ does not have the
cash flow to be able to invest in growth. Not identifying tactics and
metrics is leading to some big problems.
XYZ tackles the problem by using steps from The Engagement Model.
The first thing they do is identify the minimum margin they need for
new business, which helps them identify the minimum bids they’ll
place for loads on the load board. Second, they communicate capacity
to everyone in customer service and sales. Third, they focus sales
efforts on acquiring a specific percentage of additional business from
existing customers (which was a target they had previously identified).
Fourth, they create measurable goals around current and past
customers to call for new business and referrals. Last, a monthly sales
activity report is created to track all important metrics.
Finally, to solve the cash flow issue, XYZ decides that they’ll explore
partnering with a factoring company – at least in the short-term.
Action Items & Innovation
Tactics and metrics lay out the options for meeting the specific
objectives that ultimately roll up to your strategic goals. But you can’t
know everything that will come up throughout the year ahead and
not everything always fits neatly into achieving one specific goal.
Additionally, a tightly-controlled plan doesn’t allow for innovation or
failure. While no one enjoys failure, missing goals and objectives
happens – especially when you’re trying something new. You must
have flexibility in the plan to account for that possibility.
Action items are more specific than tactics (e.g. buy new invoicing
software). To identify action items, ask your relevant team members to
come together. Share the overall strategic goals you’ve identified, the
tactics and metrics. Then, brainstorm around what specific actionable
steps the team members could take to meet any of those goals or
targets. Have the team identify possible new solutions or actionable
steps. Nothing is too far out there when you’re generating ideas,
because you’ll decide later what you want to try.
While this step of the process may seem a bit more intensive, it does
help engage employees. It also reveals solutions and possibilities that
you, as a leader may not have even thought about. Further, people
are more willing to commit to actions or goals that they had a hand
in creating.
Once you’ve outlined all the possibilities from the brainstorm, engage
in some discussion and identify two to three actionable steps you
want to commit to for each of your tactics.
One Example:
XYZ Trucking has brought the team together to communicate the
big goals of its strategic plan and some of the tactics they think are
necessary. They’ve identified the need to increase the fleet and bring
in more business. Since these are aggressive targets, the CEO wants
to ensure everyone is onboard and ready to roll.
The discussion with the team is very helpful. People share their
concerns about the apprenticeship driver program. Harry, one of
the more tenured drivers, speaks up that he’d actually enjoy the
opportunity to be a mentor. They all decide that as part of the process,
they’ll take a new driver on three runs for the initial evaluation. They
proceed to outline some of the other steps to deciding if and when
an apprentice becomes a driver, including how/if XYZ pays for all the
training and certification or a part of it.
A lot of other options are discussed like providing a bonus to drivers
who submit a referral for additional business from a current customer
or from a potential new customer.
They discuss some options to address long drive times and
scheduling drivers to take advantage of preferred routes when
appropriate. They even talk about allowing some drivers to go parttime
instead of retiring.
XYZ doesn’t put resources into every idea, but it’s clear there’s a lot
of opportunities for growth and everyone from the truckers to the
accounting folks are engaged and ready to go.
Measurement and Realignment
We’ve mentioned metrics a few times. Both quantitative and
qualitative data is valuable. There should be a plan for how often you
review numbers, and at what points you want to rethink some aspect
of your strategy if things aren’t going well. Or, when to consider doing
more if things are going exceptionally well.
Specifically, look at each metric you’ve outlined. The ask yourselves:
1. How often and when will we look at progress in this metric
to see if we’re on track?
2. What are some of the things that could happen that may
cause us to not meet the target metric? Are these factors
under our control?
3. If we miss or exceed a metric, will that trigger a reevaluation
or some action? If so, when?
4. What are potential options if we miss a metric? What if we
do better than expected?
5. If we aren’t meeting a goal, instead of abandoning it, should
we change it or the goal timeline?
Additionally, if you’re taking on a significant new venture, consider
deciding when you think it may be best to step away. Determine when
you’d know it isn’t working and how you’ll move on.
Conversely, what if things are going much better than expected?
What if the phones are ringing off the hook? What plans are in place
to increase capacity, or to invest revenues that are growing faster
than expected?
One Example:
XYZ Trucking had business they might have to turn away because they
were at capacity. Cash flow was where it needed to be to invest in
growth, but they were not meeting recruitment targets for the number
of applicants, new hires or apprentices.
Instead of abandoning the goal, XYZ reevaluated. They went through
the Action Items & Innovation step to brainstorm some ideas. One
suggestion was to do more brokering. They may not make much (or
any) margin, but they could keep the customer until they are able
to hire additional drivers. Another idea was to bring back well liked
retired drivers on a part-time basis to recruit and mentor newer drivers
and help build a more engaged driver force.
Now, XYZ had options to explore that would keep them on the path
towards their strategic goal.
Engaging Employee Support
You do not succeed alone. You already know that you rely on your
employees to bring their best selves to work and their best ideas to
the table. We’ve alluded to how you can engage employees through
certain steps of the process. Below are three ideas on inviting the
participation of team members that will ensure the success of your
strategic plan.
➼➼
In addition to sharing your big goals on posters or boards for
everyone to see, consider making other aspects of your strategic
plan public - like the metrics for success. You may also want to
lay out some aspects in the form of a well-designed online or
print document.
➼➼
On at least one occasion, bring employees together as a group
to discuss how the strategic plan fits in with the purpose and
aspirations of your company. Invite employees to share how
they think they can make the plan a reality. One way to do this
is at table discussions. Let each table identify and then share
their best idea with the larger group, so that excitement builds.
Document all of the ideas and share the best of them with the
broader organization. Then act on them!
➼➼
Share milestones and wins within the organization. Most
importantly, recognize the contributions of all those involved.
Recognition validates a person’s efforts and ensures they feel
that exceptional work is rewarded.
If you do no other thing we outline in the model, do this – engage
your employees.
In absence of a solid strategic plan, in absence of a plan for execution,
engaged employees will accelerate growth and success. Engaged
employees are more attuned to customers. They’re more innovative
and solutions-oriented. They invest more of their discretionary effort –
which is that extra something that makes them willing to go above and
beyond the daily minimums to “get the job done.” Engaged employees
are ambassadors to your company and the stewards of your brand.
Coming Full Circle
Based on The Engagement Model, you can see that in executing
the strategic plan, it’s transformed into a living document. As you
initiate change in your organization, as the market changes and as
customers respond to both, pausing to review if you are aligned with
your purpose, and assessing the company’s current state, helps to
recalibrate. It creates an impetus to review employee engagement.
We think using the Engagement Model for Strategy Execution to
continually reengage with your strategic plan and make adjustments
will allow you to weather shifts, seize opportunities and embrace
change and people as a source of competitive advantage.
About the telos institute:
At telos, our focus is at the crossroads of our clients’ most critical
issues and highest leverage opportunities: business strategy, leadership
development and change management.
Operating globally, cross-pollinating successful mindsets, processes
and approaches across all industries, telos tempers deep functional
expertise with broad insight to drive transformational outcomes.
From large-scale, enterprise-wide interventions to smaller targeted
initiatives, our consultants are equally experienced working in
C-Suite settings or starting in the middle of organizations and
building momentum.
For more information, please visit http://thetelosinstitute.com/.
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